The Differences Between Bookkeeping and Accounting
At first glance, many small business owners think accounting and bookkeeping are the same thing. While both deal with a company’s finances, there are some differences that are important to know. We specialize in bookkeeping services for Raleigh businesses, and we sometimes see the confusion between the two disciplines.
Here are four differences between bookkeeping and accounting:
Purpose of each role: Bookkeeping refers to the more task-oriented aspect of finances. Making sure the books are balanced, recording transactions and the like. Accounting is more about analyzing the financial information to maintain the financial health of the business.
Tasks required: Bookkeepers manage day-to-day tasks such as recording transactions, making deposits, paying bills, managing payroll and more. Accountants interpret the finances, ensure the company is compliant to finance and tax laws, provide financial reports, safeguard the company’s finances and develop financial outlooks.
Education and skill requirements: While there are many training programs for bookkeeping, there’s usually not a requirement and many employers train on the job. Accounting typically requires a bachelor’s degree, and many accountants go on to earn a certified public accountant accreditation. People in both disciplines need to have an affinity for working with numbers, have good analytical skills and be highly organized and detail-oriented.
Overall perspective: The point of view for each job is different as well. Bookkeepers take on a more concrete, task-management role in a business. An accountant’s role on the other hand, is more of an advisor and is a little more abstract.
A business isn’t successful unless the money is in order. This is why both bookkeeping and accounting services are essential to business owners. In fact, bookkeepers and accountants often work hand in hand to ensure a business can see financial success. If you’re in need of bookkeeping services for your business, contact Raleigh Bookkeeping for a consultation.